Donald Trump has said the United States will impose a 15 percent tariff on imports from South Korea as part of a new trade agreement with the key Asian ally, helping Seoul avoid even steeper levies.
The deal, announced shortly after Trump met South Korean officials at the White House, came amid a flurry of trade policy declarations ahead of a self-imposed 1 August deadline. Trump had warned that higher tariffs would take effect on US imports from multiple countries from that date.
South Korean exports—ranging from computer chips and cars to steel—were previously facing a 25 percent tariff.
In contrast to the 15 percent tariff for South Korea, Trump on Wednesday imposed a 25 percent tariff on imports from India and a 50 percent levy on those from Brazil.
“I am pleased to announce that the United States of America has agreed to a full and complete trade deal with the Republic of Korea,” Trump said on Truth Social on Wednesday.
South Korean President Lee Jae Myung said on Thursday that the agreement placed South Korea on equal or better footing compared with other trading nations.
As part of the deal, the two countries have agreed to establish a $350 billion investment fund, of which $150 billion is earmarked for a shipbuilding partnership.
In a Facebook post, Lee described the deal as “the first major trade challenge” since his administration took office in June. “We have overcome a major hurdle,” he said. “Through this deal, the government has eliminated uncertainty surrounding export conditions and ensured that US tariffs on our exports are either lower than or equal to those imposed on our major trade competitors.”
The 15 percent rate aligns with tariff levels agreed by the US in trade deals with Japan and the European Union.
Trump also said South Korea would invest $350 billion in US-based projects chosen by him and would purchase $100 billion worth of liquefied natural gas and other energy products. Details on the structure and timeline of the investment package have not been disclosed. Additional investments would be announced later, he said.
Trump added that South Korea had agreed to open its markets to American products—including cars, trucks and agricultural goods—without imposing import duties.
According to the South Korean presidential office, the US will lower tariffs on South Korean-made automobiles to 15 percent from 25 percent. Tariffs on chips and pharmaceutical products destined for the US will not exceed those applied to other countries. South Korea’s rice and beef markets, however, will remain closed.
Pressure had been building on Seoul after Japan secured a similar deal to cap Trump’s proposed tariffs at 15 percent earlier this month.
During the last-minute negotiations, South Korea’s Samsung Electronics signed a $16.5 billion semiconductor deal with Tesla, while battery maker LG Energy Solution reportedly finalised a $4.3 billion agreement to supply Tesla with energy storage system batteries.
